10. Stock dividends differ from cash dividends in that stock dividends a. do not increase the legal capital b. involve disbursements of corporate funds c. require the approval of both the board of directors and the stockholders d. once received by the stockholders, are beyond the reach of corporate creditors.
10. Stock dividends differ from cash dividends in that stock dividends a. do not increase the legal capital b. involve disbursements of corporate funds c. require the approval of both the board of directors and the stockholders d. once received by the stockholders, are beyond the reach of corporate creditors.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: Law on
Transcribed Image Text:_17. a non-voting stock may vote in the following corporate acts, except in case of
a. approval of the compensation of directors
b. merger or consolidation\
c. increase or decrease in capital stock
d. sale, lease, exchange, mortgage, pledge or other disposition of all or
substantially all of corporate property.
_18. Directors may be given compensation through any of the following ways, except
a. by the vote of the stockholders representing at least a majority of the
outstanding capital stock
b. by a provision in the by laws
c. by the vote of the board of directors if the compensation is a reasonable per
diem,
d. by the vote of the BOD if the compensation is other than per diems.
_19. One of the following acts may be performed by the executive committee of a
corporation. Which is it?
a. declaration of stock dividends
b. filling of vacancies in the board of directors
c. amendment or repeal of the by-laws or adoption of new by laws.
d. Approval of contracts in the ordinary course of business.
_20. the following statements pertain to the express powers of a corporation.
1. establish pension, retirement , and other plans for the benefit of its
directors, trustees, officers and employees.
2. Make donations for the benefit of a political party or candidate or for
purposes of partisan political activity provided the donations are
reasonable.
a. both statements are true.
b. Both statements are false
c. Statement 1 is true; statement 2 is false.
d. Statement 1 is false; statement 2 is true.
Transcribed Image Text:10. Stock dividends differ from cash dividends in that stock dividends
do not increase the legal capital
b. involve disbursements of corporate funds
c. require the approval of both the board of directors and the stockholders
d. once received by the stockholders, are beyond the reach of corporate
creditors.
a.
11.the subscriber of unpaid shares which are not delinquent shall be entitled to the
following rights, except the right to
a. vote
b. inspect corporate books
c. a stock certificate
d. dividends
_12. these statements pertaining to the right of a stockholder to inspect the books and
records of a corporation were presented to you for evaluation:
1. the right may be delegated to an agent
2. the right may be denied if in the past, the stockholder improperly used
the information which he obtained from the books and records of
another corporation of which he is also a stockholder
a. both statements are true
b. both statements are false
c. statement 1 is true; statement 2 is false
d. statement 1 is false; statement 2 is true
13. under this doctrine, the separate personality of a corporation may be disregarded if it
is used for fraudulent or illegal purpose or to escape the faithful com pliance of an obligation
a. trust fund doctrine
b. doctrine of piercing the veil of corporate entity
c. doctrine of corporate opportunity
d. doctrine of limited capacity
14. Consolidation differs from merger in that in consolidation:
a. the surviving corporation shall enjoy all the rights, powers and attributes of a
corporation under the corporation code
b. the existing liabilities of the constituent corporations shall be assumed by the
surviving corporation
c. the corporate existence of all the constituent corporations shall be
extinguished and a new corporation emerges
d. the surviving corporation shall possess all the rights, privileges, immunities
and franchises of the constituent corporation.
15. The right of a stockholder to demand payment of the fair value of his/her shares when
he dissents from certain corporate acts is known as
a. pre-emptive right
b. appraisal right
c. redemption right
d. appreciation right
16. the stock that is issued without consideration or below par value or the issued price is
known as
a. watered stock
b. delinquent stock
c. redeemable stock
d. preferred stock
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